Adam Jonas, a widely followed analyst from Morgan Stanley, changed his tune slightly on Tesla on Thursday evening with an upgrade.
The analyst raised his rating on the electric car maker to equal weight from underweight. He also hiked his price target on the stock to $1,360 per share from $1,050 per share. However, the new target implies a 12-month downside of 16.1% from the stock's Thursday close of $1,621 per share.
Jonas' upgrade comes just two months after he issued his underweight rating on Tesla. But the increasing prospects of Tesla building an electric-vehicle battery supply business has made the analyst more constructive on the stock.